Eurasia Mining Plc (“Eurasia” or the “Company”), the palladium, platinum, rhodium, iridium and gold producing company, provides a general update on operational matters for the Urals and Kola operations, the possible sale of the Company’s Russian assets and sanctions legislation.
– Washing of gravels has finished for 202 2 with our team and machinery now refocussing on the winter stripping programme.
– Total production for the 2022 season is approximately 200kg of raw platinum concentrate (up 77% from 113kg in 2021) from the Bolshaya Sosnovka and Kluchiki areas with a total average grade of 363mg/m3 and a notable high-grade seam at Kluchiki providing 3.7kg raw platinum from just 3,800m3 of gravels (grading 984mg/m3).
– Grid electric power is now available at site with the power line construction completed, the high voltage substation construction completed, and all necessary peripherals completed and commissioned.
– Electric dragline (70m/11m3) is now fully assembled and is under final high voltage electrical testing and the contractual 72-hour continuous performance test.
– Eurasia’s electric dragline operators have had on the job training during the circa one year-long assembly period. Another training programme has just been completed.
– A late season infill drilling programme to determine the final 2023 mine design has been completed.
– Concluded final infill and geotechnical drilling programmes for both open pits.
– Definitive feasibility study (the “DFS”) for the Loipishnune and West Nittis open pits has been submitted for approval.
Christian Schaffalitzky, Executive Chairman of Eurasia commented: “We are encouraged by the progress made at both projects through the course of a challenging year. Our strategy remains as previously announced – to continue to develop our assets while working with counterparties in BRICS countries regarding the possible sale of our Russian assets, a process which we appreciate has now run on longer than the Company’s management team anticipated.”
James Nieuwenhuys, CEO of Eurasia commented: “The West Kytlim mining season has proven to be a success both in terms of the smooth running of the mining operation and the implementation of both the power line and dragline projects over the course of just one mining season, and this despite geopolitical challenges. We are grateful to our staff for their dedication and focus to keep these projects on budget and on time and look forward to the positive impact of predominantly electrically powered mining and processing through the 2023 season.”
Electric Dragline and Powerline
The dragline operates with a 70m boom and 11m3 bucket and has a designed earth-moving capacity of around 150,000m3 per month. The machine is intended to replace several diesel-powered excavator-bulldozer combinations and all of the stripping capacity contracted out for the 2022 mining season and is also less limited in terms of stripping depth.
The dragline will operate initially in the Ust-Tylai North area for the 2023 season. Appropriate upgrades to the mine site’s health and safety protocols, including the appointment of a permanent health and safety officer, are in place to deal with the potential hazards of high-voltage electricity required to operate the machine.
Through the course of the 2022 season, a 35Kv powerline has been installed from the village of Kytlim to the mine site over a distance of some 24 kilometres, following the route of a line operational in the 1970’s. The work involved clearing the route, installation of 286 powerline posts as well as construction and commissioning of a dedicated sub-station and hook-up point. Power in the Sverdlvosk Oblast is predominantly renewable and hydro derived so that the project’s overall CO2 emissions from both diesel machinery and on-site diesel-based electricity generation is reduced to back-up use only.
The Company has stockpiled all of the mine product (a ‘black sand’ concentrate containing platinum, palladium, iridium, rhodium and gold) from the 2022 mining season at West Kytlim for later refining. A final decision will shortly be made on the optimal strategy for refining concentrate with platinum prices now trending higher, and above US$1,000/oz, following significant price volatility through the season and USD/RUB exchange rates rebounding from 50’s ruble per US$1 in June 2022 to 60’s ruble per US$1 now. A further announcement regarding the concentrate will be made in due course.
Some photographic updates of the dragline in a final state of assembly are available to view on the Company’s website via: https://www.eurasiamining.co.uk/operations/west-kytlim
The DFS report for the Loipishnune and West Nittis open pits, which incorporates work from numerous contractors, consultants and laboratories has now been completed. Following submission, a notice has been received from Rosnedra, the relevant state authority, acknowledging receipt. An independent expert’s review of each of the study’s chapters follows, with a final opinion on the study and agreement of any parameters described within.
Work continues on the assessment of the NKT Project, contained within the Flanks license adjacent the Monchetundra (West Nittis and Loipishnune) mining license, which may be developed as a standalone project or as a project combined with Monchetundra (West Nittis and Loipishnune) deposits. In accordance with the exploration license’s requirements, a diamond core drilling programme at several locations has so far produced 5,488m of drill core testing for both near surface high-grade veins and disseminated Ni, Cu, PGE mineralisation, as well as greater width ‘bottom lode’ mineralisation as a possible continuation on strike of the mineralisation at West Nittis. A study undertaken by Wardell Armstrong International in the Second Half of 2021 (please refer for details to our website at https://www.eurasiamining.co.uk/investors/technical-reports ) demonstrates the economic potential of the bottom lode mineralisation as an underground room and pillar mining operation, with a potential overlying or concurrent open pit operation.
Rosgeo and other exploration license interests on the Kola Peninsula
A new application for an exploration license for the Nyud area has been progressed by Rosgeo and the Company will update shareholders on receipt of this license in due course. The Nyud project will form the basis for the evaluation of other projects within the Rosgeo Agreement. Separately, the Company, through its subsidiaries, is advancing a 100% owned exploration license application in the Monchegorsk area which is currently being reviewed by the relevant authorities. The exploration and mining license tenements held by Eurasia and under application position Eurasia at the forefront of Kola Ni, Cu and PGE exploration.
Possible sale of Russian assets
The Company continues to focus on selling its Russian assets, a process led by Mergers and Acquisitions Officer Dmitry Suschov with support from Artem Matyushok, Non-Executive Director of the Company, as well as from the Company’s Representative Office in Japan.
At present there can be no guarantee that the Company will enter into any binding agreements regarding the sale of these assets. Further updates regarding the sale process will be made as appropriate.
The Company’s cash position (to mid-December), following expenditure on key capital items for the West Kytlim Mine, including the dragline and powerline project, stands at approximately £4 million held in sterling and dollar denominated accounts outside of Russia. Additionally, the Company holds the 2022 West Kytlim mine product with an approximate value of £5.6 million, with additional VAT credits of circa £2 million available against future production. Following the acquisition of additional diesel machinery and the dragline during 2022, the mine at West Kytlim is now fully equipped for the 2023 mining season.
Following the update provided in the Company’s Interim Results announcement dated 30 September 2022, the Company continues to monitor and review all relevant sanctions legislation with its legal advisers.
Further announcements regarding the potential impact of any further UK or EU sanctions will be made as appropriate.
A copy of this announcement is also available on Eurasia’s website at:
For further information, please contact:
Eurasia Mining Plc
+44 (0) 20 7932 0418
Christian Schaffalitzky / Keith Byrne
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